Correlation Between Interra Copper and OM Holdings
Can any of the company-specific risk be diversified away by investing in both Interra Copper and OM Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Interra Copper and OM Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interra Copper Corp and OM Holdings Limited, you can compare the effects of market volatilities on Interra Copper and OM Holdings and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Interra Copper with a short position of OM Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interra Copper and OM Holdings.
Diversification Opportunities for Interra Copper and OM Holdings
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Interra and OMHLF is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Interra Copper Corp and OM Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OM Holdings Limited and Interra Copper is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Interra Copper Corp are associated (or correlated) with OM Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OM Holdings Limited has no effect on the direction of Interra Copper i.e., Interra Copper and OM Holdings go up and down completely randomly.
Pair Corralation between Interra Copper and OM Holdings
If you would invest 8.39 in Interra Copper Corp on August 31, 2024 and sell it today you would lose (1.81) from holding Interra Copper Corp or give up 21.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interra Copper Corp vs. OM Holdings Limited
Performance |
| Timeline |
| Interra Copper Corp |
| OM Holdings Limited |
Interra Copper and OM Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interra Copper and OM Holdings
The main advantage of trading using opposite Interra Copper and OM Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interra Copper position performs unexpectedly, OM Holdings can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in OM Holdings will offset losses from the drop in OM Holdings' long position.| Interra Copper vs. Liontown Resources Limited | Interra Copper vs. ATT Inc | Interra Copper vs. Merck Company | Interra Copper vs. Walt Disney |
| OM Holdings vs. Sherritt International | OM Holdings vs. AMG Advanced Metallurgical | OM Holdings vs. Metals X Limited | OM Holdings vs. Interra Copper Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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